Advance Premium Tax Credits (APTC) in excess of what the taxpayer is allowed, generally needs to be repaid. If you were married during the tax year and received the Advanced Premium Tax Credit (APTC), you may be eligible to use the alternative calculation for year of marriage. This could reduce the amount of excess APTC you would need to repay, if any.
Am I eligible for the Alternative Calculation for Year of Marriage?
To be eligible to use the alternative calculation, you must answer yes to ALL the following:
- Were you and your spouse each unmarried on January 1?
- Were you married on December 31?
- Are you filing a joint return with your spouse?
- Was anyone in your tax family enrolled in a qualified health plan before your first full month of marriage? (For example, if you got married on July 15, your first full month of marriage was August.)
- Was APTC paid for anyone in your tax family during 2023? (Worksheet 3)
If you do not meet the above conditions, you are not eligible to elect the alternative calculation. Leave Form 8962, Part V, blank.
What do I enter?
Before making any entries into the 8962 Form, you must visit Publication 974 and complete the steps outlined for the Alternate Calculation for Year of Marriage. These steps will help you determine what to enter into the program for alternative family size, alternative monthly contribution amount, allocation start month, and allocation stop month.
Examples of how to complete worksheets can be found in PUB 974.
Where to make the entry?
To report the entry in our program, follow these steps:
- Access return
- Health Insurance
- Complete the Health Insurance questions up to the Advanced Premium Tax Credit (1095-A) screen
- Check the box indicating you wish to use the alternative calculation for year of marriage
- Complete the steps outlined in Publication 974 (above)
- Enter the information into the program.
- Continue through the remaining Health Insurance questions.